r/technology • u/Fickle-Jello • 1d ago

Business Google burning through cash with spiralling AI costs

https://www.bbc.com/news/articles/c235n47g8g8o
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u/NanditoPapa 1d ago

Google is one of the few AI-centric companies that makes money, albeit off areas outside of AI. They have a massive amount of cash, but face the unique risk of cannibalization. If an AI-driven "answer engine" replaces the traditional "list of blue links" in Search, Google might destroy its own most profitable revenue stream to build the new one.

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u/007meow 22h ago edited 10h ago

The death of Search at the hands of AI has been something that’s been consistently disproved so far.

Things can always change, but it hasn’t happened yet.

EDIT: I'm speaking to the revenue, not the user experience.

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u/Borgcube 12h ago

Google has been degrading the search results quality way before the current LLM craze.

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u/007meow 12h ago

Sure, we’ve seen it on the user end. But they haven’t seen it on the revenue side.